Hi ,
Mortgage/trust deed investors, lenders, servicers and law firms were just awarded more protection in serving non-judicial foreclosures, according to a recent Supreme Court ruling.
The ruling is a victory for the mortgage industry in its fight to retrieve property from delinquent homeowners. One attorney claims the ruling may eliminate thousands of similar homeowner lawsuits.
Each state differs in foreclosure requirements, but generally fit into two categories: states with judicial foreclosures that must go through the courts, and non-judicial foreclosures, which don't.
In the case of the Obduskey v. McCarthy & Holthus decision, the homeowner tried to fight his non-judicial foreclosure in Colorado (Colorado is a non-judicial foreclosure state).
Homeowner Dennis Obduskey alleged that once he received a foreclosure notice from law firm McCarthy & Holthus, he invoked protection under the federal Fair Debt Collection Practices Act.
This act protects consumers and maintains that: “a ‘debt collector’ must ‘cease collection’ until it ‘obtains verification of the debt’ and mails a copy to the debtor,” the Supreme Court ruling states.
However, McCarthy & Holthus is not a debt collector by definition, as it only pursues non-judicial foreclosures, the Court ruled.
Cheers,
Bill
W. J. Mencarow, President, The Paper Source, Inc.
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-- W. J. Mencarow, President, The Paper Source, Inc.
